New Update: Healthcare Costs Increasing by Over 60% in Some States. Will you be impacted?

Amedisys Employees, Prepare for Enhanced HSA Benefits in 2025

Healthcare Provider Update: Amedisys is a leading provider of home health care and hospice services, dedicated to enhancing patient care through personalized treatment plans tailored to individual needs. As 2026 approaches, significant healthcare cost increases are expected. Premiums for Affordable Care Act (ACA) marketplace plans are projected to rise sharply, with some states, like New York, facing hikes over 60%. If the enhanced federal premium subsidies expire as scheduled at the end of 2025, millions of Americans, including Amedisys employees, could see their out-of-pocket expenses rise dramatically, emphasizing the need for strategic planning in healthcare benefits. Click here to learn more

For Amedisys employees, maximizing contributions to your HSA in 2025 may be a smart way to control costs around healthcare and also grow your long-term savings for retirement, said.

With the increase in HSA contribution limits coming soon, Amedisys employees approaching retirement should take advantage of this opportunity to grow their healthcare savings now so they can take a tax-efficient approach to future medical costs, said Sullivan.

In this article, we will discuss:

1. Limits on 2025 IRS health savings account (HSA) contributions.

2. How HSAs give you a triple tax advantage and help you control costs for healthcare.

3. HSAs & retirement planning & Medicare premiums.

The IRS has announced inflation-adjusted increases to the health savings account (HSA) contribution limits for 2025. The contribution cap for those with self-only health coverage will increase from USD 4,150 in 2024 to USD 4,300 in 2025, and for families, the maximum will increase from USD 8,300 to USD 8,550.

HSAs provide a triple tax benefit - contributions are deductible, account assets grow tax-free, and withdrawals for approved medical expenses are tax-free. Such features help HSAs manage healthcare costs.

Your high-deductible health plan must offer an HSA. For the year 2025, the IRS says the plans must carry a USD 1,650 individual deductible and USD 3,300 family deductible.Even with all these benefits, a 2023 survey by the Plan Sponsor Council of America found only 19% of HSA account holders invest—most keep their savings in cash—potentially missing big growth opportunities.

The IRS is also updating the catch-up contribution limit for Amedisys employees over age 55 this year—keeping the USD 1,000 catch-up contribution for now.Understand HSAs and how they could benefit your financial strategy—especially with the rise of healthcare costs and retirement planning. Prompt financial decisions such as switching to a Roth IRA or drafting a will are life planning steps as well.

And for Amedisys employees approaching retirement age: HSA money can help pay for Medicare premiums when you turn 65. That includes Medicare Advantage plans, as well as Parts B and D premiums, although Medigap premiums are not eligible for HSA expenditure. While not all medical expenses are covered by Medicare, funding these costs through HSAs could optimize your healthcare spending in retirement. A 2022 study by Fidelity Investments estimated medical costs for a retired couple would be around USD 315,000 after taxes.

Consider your health savings account (HSA) an essential tool in your financial toolkit. Like getting a new phone, increasing HSA contribution limits for 2025 gives you more options to manage and invest in your healthcare. You can think of contributing to your HSA as downloading an app that gives you triple tax benefits—deductions on contributions, tax-free growth, and tax-free withdrawals for qualified medical expenses. This keeps your health coverage as current and efficient as new technology—making your HSA a critical component of your Amedisys retirement planning strategy.

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Sources:

1. Fidelity Investments. 'HSA Contribution Limits 2024 and 2025.' Fidelity.com , 23 Jan. 2025, https://www.fidelity.com/learning-center/smart-money/hsa-contribution-limits . Accessed 5 Mar. 2025.

2. Plan Sponsor Council of America (PSCA). 'Helping Employees Enroll in HSAs.' PSCA.org , 9 Nov. 2023, https://www.psca.org/news/psca-news/2023/11/PR_2023_HSAreprot . Accessed 5 Mar. 2025.

3. Internal Revenue Service (IRS). 'Part III Administrative, Procedural, and Miscellaneous.' IRS.gov , May 2024, https://www.irs.gov/pub/irs-drop/rp-24-25.pdf . Accessed 5 Mar. 2025.

4. Woodruff Sawyer. 'IRS Releases 2025 HSA Contribution Limits and HDHP Deductible and Out-of-Pocket Limits.' Woodruffsawyer.com , 13 May 2024, https://woodruffsawyer.com/insights/2025-hsa-limits-released . Accessed 5 Mar. 2025.

5. Plan Sponsor Council of America (PSCA). 'HSAs: A Growing Retirement Savings Strategy.' 401k Specialist , Nov. 2023, https://401kspecialistmag.com/higher-numbers-of-hsas-positioned-as-retirement-savings-strategy . Accessed 5 Mar. 2025.

What is the 401(k) plan offered by Amedisys?

The 401(k) plan at Amedisys is a retirement savings plan that allows employees to save a portion of their paycheck before taxes are taken out.

How can I enroll in the Amedisys 401(k) plan?

Employees can enroll in the Amedisys 401(k) plan by completing the enrollment process through the company's benefits portal during the designated enrollment period.

Does Amedisys offer a company match for the 401(k) contributions?

Yes, Amedisys offers a company match for employee contributions to the 401(k) plan, which helps employees grow their retirement savings.

What is the maximum contribution limit for the Amedisys 401(k) plan?

The maximum contribution limit for the Amedisys 401(k) plan is based on IRS guidelines, which may change annually. Employees should check the latest limits for the current year.

Can I change my contribution percentage to the Amedisys 401(k) plan?

Yes, employees can change their contribution percentage to the Amedisys 401(k) plan at any time by accessing their account through the benefits portal.

What investment options are available in the Amedisys 401(k) plan?

The Amedisys 401(k) plan offers a variety of investment options, including mutual funds, target-date funds, and other investment vehicles to suit different risk tolerances.

When can I start withdrawing from my Amedisys 401(k) plan?

Employees can typically start withdrawing from their Amedisys 401(k) plan without penalties after reaching age 59½, but specific plan rules may apply.

What happens to my Amedisys 401(k) if I leave the company?

If you leave Amedisys, you can choose to roll over your 401(k) balance to another retirement account, cash out, or leave it in the Amedisys plan if eligible.

Is there a loan option available through the Amedisys 401(k) plan?

Yes, Amedisys allows employees to take loans against their 401(k) balance, subject to certain terms and conditions outlined in the plan documents.

Are there any fees associated with the Amedisys 401(k) plan?

Yes, the Amedisys 401(k) plan may have administrative fees and investment-related fees, which are disclosed in the plan documents.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Amedisys has announced a restructuring plan that includes significant layoffs in response to declining patient volumes and financial pressures. Additionally, the company is revising its employee benefits and pension plans to reduce costs.

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For more information you can reach the plan administrator for Amedisys at 3854 American Way Baton Rouge, LA 70816; or by calling them at (225) 292-2031.